RVNL shares zoom 19% to hit record high today; here's what analysts say

Shares of Rail Vikas Nigam Ltd on Friday extended their gains for the third straight session. The stock today soared 18.94 per cent to hit an all-time high of Rs 498.05. It eventually settled 17.36 per cent higher at Rs 491.45. At this price, the multibagger scrip has gained 169.81 per cent in 2024 so far.

The railway PSU has been securing fresh orders and signing meaningful pacts. It has recently signed a Memorandum of Understanding (MoU) with Delhi Metro Rail Corporation Ltd (DMRC).

"RVNL has signed MoU with Delhi Metro Rail Corporation Limited (DMRC) for participation in the upcoming projects in India and abroad as Project Service Provider for Metro, Railways, High Speed Rail, Highways, MegaBridges, Tunnels, Institutional Buildings/ Workshops or Depots, S&T works, and Railway Electrification," it stated in an exchange filing.

Prior to this, the state-owned firm emerged as the lowest bidder a Central Railway contract worth Rs 132.59 crore.

On technical setup, support on the counter could be seen at Rs 470.

The counter looked strong on daily charts. It has potential to hit an upside target of Rs 520 in the near term. Keep stop loss placed at Rs 470," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.

The expected trading range will be between Rs 425 and Rs 515 for the short term, said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

RVNL is an executing arm of Indian Railways and works for and on behalf of the ministry to execute projects assigned to it. It works on a turnkey basis and undertakes the full cycle of project development from conceptualisation to commissioning including stages of design, preparation of estimates, calling and award of contracts, project and contract management.

As of March 2024, the government held a 54.03 per cent stake in the rail PSU.